Motorists get 3 years to sue

Insurance commissioner tells companies not to limit lawsuits.

Insurance commissioner tells companies not to limit lawsuits.

December 23, 2005

LANSING (AP) -- The state's insurance commissioner is barring auto insurers from limiting the amount of time people can sue for certain benefits. Linda Watters, who heads the Office of Financial and Insurance Services, announced that she issued an order prohibiting insurance companies from imposing one-year limitations on legal suits involving uninsured motorist coverage. Any limitations period below three years is misleading and unreasonable, Watters said. The order is a response to a recent Michigan Supreme Court decision upholding an insurance policy with a one-year limitation period, she said. "The Granholm administration and my staff are always interested, first and foremost, in protecting consumers," Watters said in a statement. Lori Conarton, spokeswoman for the Michigan Insurance Institute, criticized Watters' decision and added that uninsured coverage is optional under the state's no-fault system. "It is unfortunate that the commissioner is mandating changes to a contract which is between the insurance company and its policyholders behind closed doors without any input or dialogue with the insurance industry that we are aware of," she said in a statement.